Stellar Lumens (XLM) experienced an impressive 270.11% move to the upside throughout the course of 2024. The cryptocurrency reached a yearly high of $0.5592 on December 2 — however, it saw a pullback earlier than most cryptocurrencies did — dropping to $0.3312 by the close of the year.
XLM has been quick to recover — since January 1, it has seen prices increase by 35.08%, and was trading at $0.44908 at press time — still some 19.7% off the recent high.
Stellar has etched out a unique niche for itself by focusing on cross-border payments, low transaction costs, and speed and scalability. It is currently the 15th largest cryptocurrency in the world by market cap.
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On account of its impressive returns and variety of use cases, Finbold has decided to consult one of the most advanced publicly available AI models to determine the prices that XLM could reach by the end of 2025.
AI highlights bullish and bearish factors affecting XLM
On the bullish side of the aisle, OpenAI’s ChatGPT-4o model highlighted Stellar’s collaboration with MoneyGram and Circle in cross-border payments. In addition, it noted the Stellar Development Foundation’s partnerships with several central banks, which could see the network become a key part of institutional infrastructure.
To boot, the AI model reflected on the growing interest in real-world asset (RWA) tokenization — a task that Stellar’s fast, low-cost transaction protocol excels at, as a potential growth catalyst.
On the other hand, XLM’s perceived overreliance on those few key partnerships was singled out as a weakness. Losing those key clients to competitors could severely hamper Stellar’s value — and rivals like XRP or emerging Ethereum (ETH) layer-2 solutions could erode XLM’s user base.
Lastly, the AI model noted Stellar’s sparse DeFi and NFT ecosystem, as well as the usual regulatory risks and legal uncertainty that surround cryptocurrencies — although with the upcoming Trump administration, this is a far less pronounced worry than it was before.
AI sets Stellar price forecast for 2025
Once everything was taken into account, OpenAI’s flagship model set three price targets — reflecting a bullish, bearish, and mixed scenario for the rest of the year. Per ChatGPT, if bullish factors dominate, XLM could see prices surge to between $1.75 and $2.00 by late 2025 — representing an ambitious 289.68% to 343.45% upside compared to current prices.
In contrast, a bearish scenario would see prices drop to between $0.25 and $0.35 — equating to a 22.06% to 44.36% downturn.
Finally, a mixed scenario that would see the asset maintain its current trajectory could lead the price of the token to reach a level between $0.75 and $1 — some 67% to 122.67% higher than its current price.
Featured image via Shutterstock
